Quick Definition

The 183-Day Rule is a tax principle used to determine a taxpayer's residency status based on their physical presence in a country for 183 days or more in a given tax year.

Examples

• 1A consultant from Canada works in the United States for 200 days in a year and becomes a tax resident under the 183-Day Rule, subject to U.S. income tax on their worldwide income.
• 2A student from India studies in Germany for 190 days within a single calendar year, triggering the 183-Day Rule and requiring them to file a tax return in Germany.
• 3A digital nomad from Australia spends 184 days in Spain, thereby becoming a tax resident of Spain under the 183-Day Rule, affecting their tax obligations.

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